Income Taxes (Tables)

12 Months Ended

Aug. 31, 2016

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

The following summarizes the Company’s provision for income taxes on income from operations:

	Year Ended August 31,
	2016		2015
Current:
Federal	$	2,226,000	$	1,568,000
State		362,000		325,000
Foreign		28,000		(5,000)
		2,616,000		1,888,000
Deferred:
Federal		(273,000)		560,000
State		90,000		(194,000)
Foreign		-		-
		(183,000)		366,000
Total	$	2,433,000	$	2,254,000

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

Income taxes for the years ended August 31, 2016 and 2015 differ from the amounts computed by applying the federal statutory corporate rates of 34% to the pre-tax income from operations.

The differences are reconciled as follows:

	Year Ended August 31,
	2016		2015
Current:
Expected income tax benefit at statutory rate	$	2,234,000	$	2,008,000
Increase (decrease) in taxes due to:
State tax, net of federal benefit		303,000		284,000
Permanent differences		29,000		32,000
Change in deferred tax asset valuation allowance		(121,000)		62,000
Other, net		(12,000)		(132,000)
Income tax expense	$	2,433,000	$	2,254,000

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

The components of deferred taxes at August 31, 2016 and 2015 are summarized below:

	August 31,
	2016		2015
Deferred tax assets:
Net operating loss	$	518,000	$	522,000
Capital losses		-		116,000
Allowance for doubtful accounts		8,000		14,000
Accrued expenses		381,000		146,000
Accrued workers’ compensation		25,000		32,000
Inventory reserve		852,000		775,000
Unrealized losses on investment		(167,000)		(254,000)
Excess of tax over book depreciation		(147,000)		(78,000)
Other		198,000		305,000
Total deferred tax assets		1,668,000		1,578,000
Valuation allowance		(518,000)		(639,000)
Total deferred tax assets	$	1,150,000	$	939,000